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Mar 15, 2016 by |

Allianz Life Insurance: The Risks Associated With Life Insurance and Annuities

Allianz Life Insurance Company is based in Minneapolis but sells life insurance and annuities throughout the United States.  Fixed annuities, indexed annuities, variable annuities and deferred annuities are among the annuities sold by Allianz.  Allianz also offers variable and whole life insurance policies, which provide not only a death benefit but also an opportunity to invest with premium payments.  Annuities and life insurance policies are popular investments with older individuals in or nearing retirement because annuities make the promise of ongoing income, while life insurance policies with investment components promise increasing cash value.

Legal action has been taken in the past against Allianz Life Insurance company and policyholders need to make sure they carefully monitor account information and communications from all insurance companies and investments.  If you are being deprived of any promised benefits or if the terms of your policy are changing in an unfavorable way, Santa Clara County elder abuse lawyers may be able to assist you.

The Risks of Annuities & Life Insurance Policies

Allianz Life Insurance offers different options for people who are seeking safe investments.

  • Annuities involve making a purchase payment and receiving ongoing periodic payments that can last a lifetime. There are different types of annuities, including a deferred annuity where payments are made to the insurer by the policyholder to buy the annuity but the insurer doesn’t begin paying out until a later date.
  • Whole life insurance provides more than just a death benefit in exchange for premiums. Premiums in excess of the cost to insure are paid, and the money is invested and grows so the policy builds up a cash value.  Whole life policies are marketed with promises that they can provide financial security and a safe investment. Both universal and variable life insurance policies also have investment components, with variable policies providing the opportunity for policyholders to invest in equities.

When insurance agents sell whole life policies or annuities – and especially deferred annuities – they often get larger commissions than if a term life policy or other type of investment vehicle was sold. As a result, many people end up purchasing these investments from Allianz Life Insurance and other insurers that pay big commissions to those who get policyholders signed up for coverage.

Problems arise when the investments being sold are misrepresented or when facts are not disclosed about costs and benefits.  Investors may find themselves facing surprise fees and expenses, and if they decide the cost is too much, they may face a surprise surrender charge.

Many companies offering annuities and life insurance policies engage in tactics like charging unexpected fees or surrender charges/penalties.  Not all have faced legal action for this behavior. In the past, Allianz Life Insurance, however, has been the defendant in a class action lawsuit.  In 2015, Allianz settled with more than 200,000 senior citizens. The seniors who sued had purchased deferred annuities between 2001 and 2006, but were not compensated until 2016 because of the lengthy litigation process.

If you or a family member were sold an annuity or insurance product that is failing to live up to promises made by the annuity or life insurance company, have a lawyer review the policies for free to determine your legal rights. Contact the Evans Law Firm, Inc. by calling us at 415-441-8669 or toll free at 888-503-8267.

*NOTE: Specific details regarding case and settlement results are not indications of the results of future cases and settlements, nor should they be held to be guarantees, warranties, or predictions regarding the result of representation by our firm.  Furthermore, any message regarding the result of a specific case is not a promise of similar results in future cases, but rather represents the outcome of the specific legal and factual basis from which it arises.

Source: Allianz – https://www.allianzlife.com/

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